Oil decreases by 5% on news of Brexit

On announcement of Britains decision to leave the European Union, oil prices plunged by 5% today. Brent Crude earlier tumbled 6% to $47.50 and later in the day 4.9% at $48.41 per barrel. Price for U.S crude decreased 5% at $47.64, its largest fall since February. However on the whole, losses for the week were small as the Brent fell 1.5% and American crude by 0.7%. According to Dominick Chirichella from Energy Management Institute in New York, markets will only experience some turmoil for a drawn-out period and global markets together with Britain and the EU are far from collapsing like in 2008. With investors avoiding risk, oil is not likely to increase beyond the $50 per barrel mark soon. Meanwhile U.S oil rigs decreased by seven in a months time.